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Sneaky maths

We pay 10% GST in Australia. When you buy a book with a discount code, Blurb applies the 10% to the full price of the book, not the discounted price, so effectively we're paying more than 10% GST. Example: Let's say a book is $100, but a 40% discount code is applied. Blurb do this ...

$100 + $10 GST - $40 discount (representing 40% of the $100, not the $110) = $70

I'd have thought his to be more appropriate ...

$100 - $40 discount = $60 then add $6 GST which comes to $66

Or this, which is essentially the same ...

$100 + $10 GST - $44 discount (representing 40% of the $110) which comes to $66

$10 GST on a $60 book equates to about 17% GST.

I put something on these boards some time ago along these lines but I don't think it's there any more. Perhaps it was deleted. I wonder whether they'll delete this one.

Graham Meale

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